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Slides prepared
by John Loucks

2002 South-Western/Thomson Learning TM

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1

Chapter
Chapter 19
19

Maintenance Management

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Overview







Introduction
Repair Programs
Preventive Maintenance (PM) Programs
Machine Reliability
Secondary Maintenance Department Responsibilities
Trends in Maintenance
Maintenance Issues in Service Organizations
Wrap-Up: What World-Class Companies Do

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Equipment Malfunctions

Equipment malfunctions have a direct impact on:
Production capacity
Production costs
Product and service quality
Employee or customer safety
Customer satisfaction

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Maintenance Departments

A maintenance manager typically is a plant engineer
who reports to a plant or manufacturing manager
Maintenance departments are usually split into two
groups:
Buildings and Grounds
Equipment

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Maintenance Activities

Repairs
Repair activities are reactive.
Breakdowns and malfunctions typically occur
when equipment is in use.
Standby machines and parts can speed repairs.
Preventive Maintenance (PM)
Regularly scheduled inspections are performed.
PM activities are performed before equipment
fails.
PM is usually performed during idle periods.


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Tradeoff Between Repairs and PM

At minimum level of PM, it is a remedial policy
fix machines only when they break
the cost of breakdowns, interruptions to
production, and repairs is high
As the PM effort is increased, breakdown and repair
cost is reduced
At some point, the total maintenance cost (PM,
breakdown, and repair) reach a minimum

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Tradeoff Between Repairs and PM
Annual Cost ($)
Minimum Total
Maintenance Cost

Minimum
Level of
Preventive
Maintenance

Total
Maintenance
Costs
Preventive
Maintenance
Cost
Breakdown
and Repair
Cost

Degree of Preventive Maintenance
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Maintenance Policies that Reduce
Frequency and Severity of Malfunctions
Reduces Reduces
Maintenance Policy
Frequency Severity
Emphasize preventive maintenance X X
Provide extra machines X
Replace machine parts early X
Involve operators in maintenance X X
Overdesign machines X
Design machines for maintainability
X
Enhance maint. dept.’s capability X X
Increase spare parts supply
X
Increase standby machines
X
Increase in-process inventories X
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Repair Programs

Objectives
Get equipment back into operation as quickly as
possible.
Control cost of repairs crews.
Control cost of the operation of repair shops.
Control the investment in replacement spare parts.
Control the investment in standby or backup
machines.
Perform the appropriate amount of repairs at each
malfunction.




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Repair Crews and Standby Machines

Repairs often performed on an emergency basis to:
Minimize interruptions to production
Correct unsafe working conditions
Improve product/service quality
In emergency situations:
Specialists may work overtime
Supervisor/engineers are nearby to collaborate
Standby machines may be quickly put in operation

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How Speedy Should Repairs Be?
Cost ($)
Minimum
Total Cost
of Repairs

Total Costs
of Repairs
Cost of Repair
Crews & Shops,
Spare Parts, and
Standby Machines
Cost of
Interruptions to
Production

0
Slow

Speed of Making Repairs

Fast
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Breakdowns Trigger
Repairs and Corrective Actions
An equipment breakdown should trigger two actions:
 Fast repair of the malfunction equipment
 Development of a program to eliminate cause of the
malfunction and need for such repairs in the future
Modification/redesign of malfunctioning machine
Modification/redesign of part or product being
processed
Training of operators to improve machine care
More frequent preventive maintenance/inspection


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Extent of Repairs


Do just enough repairs to get equipment running
again.
Repair the malfunction and replace some parts that
are worn.
Perform a major overhaul of the equipment.
Replace the old equipment with new.

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Decision Analysis in Repair Programs

Determining the size of repair crews
This is one repair-capacity decision
Queuing analysis (Chapter 9) is often used
Computer simulation (Chapter 9) is used when the
assumptions of queuing formulas do not apply
Determining the number of standby machines to have
Trade-off between cost of lost production time and
cost of machine storage, handling, ….

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Example: The Shirt Factory

Determining the Size of Repair Crews
Sewing machines break down at an average rate of
12 per hour and the average repair time is .75 hours.
The plant manager at The Shirt Factory has specified
that a malfunctioning machine should be out of
production for no more than 2 hours as an average.
How many sewing machine repair specialists
should TSF have on duty? (Assume that the
breakdown rate is Poisson distributed and the repair
times are exponentially distributed.)
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Example: The Shirt Factory
Determining the Size of Repair Crews
1) Compute the necessary average service rate for the
repair shop (entire crew).

ts  1 (   )
2 = 1/( – )
 = 12.5 machines per hour

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Example: The Shirt Factory
Determining the Size of Repair Crews
2) Compute the implied average service rate per repair
specialist.
= 1/(Hours per machine per specialist)
= 1/.75
= 1.333 machines per hour
3) Compute the necessary number of repair specialists.
= /(Machines per hour per specialist)
= 12.5/1.333
= 9.375 or 10 specialists

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Example: Accounting Unlimited

Determining the Number of Standby Machines
At the home office of AU, a stock of standard
desktop computers is available to replace computers
that malfunction anywhere in the building.
If a standby computer is not available when
needed, it costs AU $300 for employee idle time and
subsequent overtime. An idle standby computer costs
AU $180 per week (opportunity, obsolescence, and
storage costs).

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Example: Accounting Unlimited

Determining the Number of Standby Machines
Based on the last 105 weeks, the demand pattern
for standby computers at AU is:
Weekly Demand
Occurrence
5
15
10
25
15
35
20
30
How many standby computers should be stocked
by AU to minimize total expected costs?
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Example: Accounting Unlimited

Determining the Number of Standby Machines
First, compute the probability of occurrence for each
level of demand.
Weekly Demand
Occurrence Probability
5
15 15/105 = .143
10
25
.238
15
35
.333
20
30
.286
105
1.000

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Example: Accounting Unlimited

Determining the Number of Standby Machines
Payoff Table (Cij values in box)

SNi Standby Computers Needed
EC=
5
10
15
20 P(SNi)(Cij)]
Sj
Standby
Computers
Stocked

5
10
15
20
P(SNi)

0
900
1800
2700
.143

1500
0
900
1800
.238

3000 4500
1500 3000
0
1500
900
0
.333 .286

$2,643.00
$1,486.20
$ 900.60
$1,114.20

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Advantages of Letting Workers
Repair Their Own Machines




Greater variety may make job more satisfying
May be more sensitive to potential malfunctions
Increase flexibility
Can make minor repairs faster
Can avoid minor repairs by cleaning, lubricating,
adjusting and servicing machines
Operate machines more carefully

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Reasons for a PM Program



Reduce the frequency and severity of interruptions
due to malfunctions
Extend the useful life of equipment
Reduce the total cost of maintenance by substituting
PM costs for repair costs
Provide a safe working environment
Improve product quality by keeping equipment in
proper adjustment

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PM and Operations Strategies

PM program is essential to the success of a productfocused positioning strategy
On production lines, there are little if any in-process
inventories between adjacent operations
If a machine breaks down, all downstream operations
will soon run out of parts to work on

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Automation and the Prominence of PM

Many operations are slowly moving toward
workerless production
We are seeing a shift from large to smaller production
workforces
Along with this, we are seeing a shift from small to
larger PM workforces
Production workers displaced by automation will
need to be retrained to become PM workers

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Scheduling PM Activities

PM and production are increasingly viewed as being
equally important
In some plants, two 8-hour shifts are devoted to
production and one 4-hour minishift is devoted to PM
In other plants, three shifts are used for production,
but time allowances are factored into production
schedules for PM activities

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PM Database Requirements

Detailed records, or an ongoing history, must be
maintained on each machine
Dates and frequency of breakdowns
Descriptions of malfunctions
Costs of repairs
Machine specifications/checklists for PM inspection
Computers generally used to maintain a database
Also, data can be kept in plastic pocket on a machine



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Modern Approaches to PM


PM at the source - workers have the fundamental
responsibility for preventing machine breakdowns by
conducting PM on their own machines
Workers listen for indications of potential equipment
malfunction
Maintenance-related records maintained by workers
Use of quality circles

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Decision Analysis in PM

Three decisions in particular
Determining the number of spare parts to carry
Determining how often to perform PM on a group
of machines
Planning and controlling a large-scale PM project

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Determining the Number of Spare Parts
to Carry for PM Inspections
Two types of parts demand arise from PM inspection:
 Parts that we routinely plan to replace at the time of
each inspection (demand that is certain)
This demand can be satisfied by applying Material
Requirements Planning (MRP) logic (Chapter 15)
 Parts, discovered during an inspection, in need of
replacement (demand that is uncertain)
This inventory problem is similar to the numberof-standby-machines problem covered earlier in
this chapter (payoff table analysis was used)

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Determining the Frequency of Performing PM

First, compute the expected number of breakdowns
for each PM policy.
Next, compute the expected breakdown cost,
preventive maintenance cost, and total cost for each
PM policy.
Finally, identify the policy that minimizes the total
cost per unit of time (say, per week).

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Expected Number of Breakdowns
n

B n  N( p n )  B(n 1) p1  B(n  2) p 2  ...  B1p (n 1)
1

where:
Bn = expected number of breakdowns for each of the
PM policies
pn = probability that a breakdown will occur between
PM inspections when PM is performed every n
periods
N = number of machines in group
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Example: PM Frequency
It costs $6,000 to perform PM on a group of four
machines. The cost of down time and repairs, if a
machine malfunctions between PM inspections, is
$8,000.
How often should PM be performed to minimize
the expected cost of malfunction and the cost of PM?
(The machines’ breakdown history is on the next
slide.)

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Example: PM Frequency

Machine Breakdown History
Weeks
Between PM
1
2
3

Probability That a
Machine Will Malfunction
0.2
0.3
0.5

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Example: PM Frequency
n

B n  N( p n )  B(n 1) p1  B(n  2) p 2  ...  B1p (n 1)
1

B1 = 4(0.2) = 0.800
B2 = 4(0.2 + 0.3) + 0.8(0.2) = 2.160
B3 = 4(0.2 + 0.3 + 0.5) + 2.16(0.2) + 0.8(0.3) = 4.672

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Example: PM Frequency
Exp. Weekly
PM
Exp. Number Exp. Weekly Total
Every Number of BDs Cost of Cost Weekly
n Wks. Of BDs per Wk. BDs of PM
Cost
1
0.800 0.800 $6,400 $6,000 $12,400
2
2.160 1.080
8,640 3,000 11,640
3
4.672 1.557 12,456 2,000 14,456
The policy that minimizes total weekly cost is:
perform PM every 2 weeks.
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Large-Scale PM Projects

Large-scale projects occur commonly in maintenance
departments.
Banks of machines, whole production departments,
and even entire factories are shut down periodically
to perform PM.
The number and diversity of the PM tasks that must
be performed can be great.
CPM (in Chapter 10) is a useful way to plan and
control large-scale maintenance projects.
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Approaches to Improving
Machine Reliability

Overdesign - enhancing the machine design to avoid
a particular type of failure
Design simplification - reducing the number of
interacting parts in a machine
Redundant components - building backup
components right into the machine so that if one part
fails, it’s automatically substituted

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Secondary Maintenance Responsibilities







Housekeeping, groundskeeping, janitorial
New construction, remodeling
Painting
Security, loss prevention
Pollution control
Waste recycling
Safety equipment maintenance
Public hazard control

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Trends in Maintenance



Production machinery is becoming more and more
complex and maintenance personnel must keep pace
Special training programs to maintain worker skill
level
Subcontracting service companies
Production workers maintain own equipment
Computer assistance in maintenance

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Computer Assistance in Maintenance


Scheduling maintenance projects
Maintenance cost reports by production department,
cost category, and other classifications
Inventory status reports for maintenance parts and
supplies
Parts failure data
Operations analysis studies

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Maintenance Issues in Service Organizations


Maintenance issues are not limited to manufacturing
Transportation firms (airlines, trucking companies,
package delivery services, railroads) must keep their
vehicles in top operating condition
Highway departments must maintain roadways
Office personnel are reliant on copiers, printers,
computers, and fax machines working properly
As services become increasingly automated, service
firms face more and more maintenance issues
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Wrap-Up: World-Class Practice


Empower workers so they “own” their machines
Implement JIT to help reduce inventories and cycle
time
Invest in factory and service automation projects
Utilize automated process sensing and control
systems
Use computers in maintenance management

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End
End of
of Chapter
Chapter 19
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